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IIA-CIA-Part3 exam is a three-hour computer-based test that consists of 100 multiple-choice questions. IIA-CIA-Part3 Exam is administered at Pearson VUE test centers around the world. IIA-CIA-Part3 exam is designed to test the candidate's knowledge of business processes, financial management, risk management, and governance. Candidates who pass the exam are awarded the Certified Internal Auditor (CIA) designation.

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IIA Business Knowledge for Internal Auditing Sample Questions (Q33-Q38):

NEW QUESTION # 33
Which of the following job design techniques would most likely be used to increase employee motivation through job responsibility and recognition?

A. Job complicating
B. Job enlargement
C. Job enrichment
D. Job rotation

Answer: C

NEW QUESTION # 34
An organization has a declining inventory turnover but an increasing gross margin rate. Which of the following statements can best explain this situation?

A. The organization has adopted just-in-time inventory.
B. he organization's operating expenses are increasing.
C. The organization's inventory is overstated.
D. The organization is experiencing inventory theft.

Answer: A

NEW QUESTION # 35
An organization must manage its flows of raw materials, components, finished goods, services, or information through intermediaries to ultimate consumers. These flows may occur across the functions in an organization's:

A. Supply chain.
B. Integrated chain.
C. Value chain.
D. Logistic chain.

Answer: C

Explanation:
The supply chain consists of flows from sources of a) raw materials, b) components, c) finished goods, d) services, or e) information through intermediaries to ultimate consumers.
These flows and the related activities may occur across the functions in an organization's value chain R&D, design, production, marketing, distribution, and customer service). These flours and the related activities also may occur across separate organizations.

NEW QUESTION # 36
A software that translates hypertext markup language (HTML) documents and allows a user to view a remote web page is called:

A. A web server.
B. A web browser.
C. An operating system.
D. A transmission control protocol/Internet protocol (TCP/IP).

Answer: B

NEW QUESTION # 37
A department store sells gift certificates that may be redeemed for merchandise. Each certificate expires 3 years after issuance. The revenue from the gift certificates should be recognized:

A. In the period the certificates are redeemed or in the period they expire if they are allowed to lapse.
B. In the period the certificates are sold.
C. In the period the certificates expire.
D. Evenly over 3 years from the date of issuance.

Answer: A

Explanation:
Income, which includes revenue and gains, should not be recognized until an increase future economic benefits related to an increase in an asset or a decrease in a liability is sufficiently certain and can be measured reliably_ These criteria are met when the certificates are redeemed or expire because the liability for redemptions will then decrease and economic benefits will be reliably measurable. On January 1, Year 1, a construction company signed a contract with a property management firm involving the construction of a large urban office tower. The total price of constructing the tower was agreed to be US $10 million with US $2 million being paid on the date of the agreement. Construction began immediately upon the signing of the contract and was expected to take 3 years to complete. The original estimate of total construction costs was US $8 million. During the year ended December 31, Year 1, US $4 million of construction costs were incurred, and engineering estimates indicated that the office tower was 30% complete at year-end. At year-end, the revised estimate of total construction costs was US $8.5 million and the properly management firm had been billed a further US $4 million, although only US $1 million of that amount had been collected by year-end.

NEW QUESTION # 38
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